Hermes Investment Management, the £33.0 billion investment manager, has today announced that it has established a participation agreement with Util, an Oxford-based financial technology company. Hermes will be accessing Util’s proprietary holistic company valuation methodology which addresses the need for a standardized and comparable analysis that considers a company’s social and environmental performance alongside its financial performance. This analysis will help identify and steward investments to deliver superior financial and non-financial performance. The methodology builds upon the best practice of existing global frameworks, including the UN Principles for Responsible Investing, Integrated Reporting and the UN Sustainable Development Goals (SDGs).

Over the next twelve months, Hermes will assess and audit Util’s methodology, through its application to specific Hermes’ listed equity funds. Leon Kamhi, Head of Responsibility at Hermes will be joining Util’s Advisory Committee.

Leon Kamhi, Head of Responsibility at Hermes Investment Management, said: “The effective measurement of social and environmental returns to stakeholders, alongside the financial, is key to enabling the investment industry to deliver the holistic needs of beneficiaries and achieving the UN SDGs. We are looking forward to supporting Util in the development of this methodology.”

Stephen Barnett, Util CEO, said: “Hermes consistently leads its industry in both thought and action, and its continued support of innovation emphasises Hermes’ commitment to leading the next generation of responsible investors. Working with Hermes will help strengthen our methodology to ultimately create a critical piece of the 21st century financial infrastructure.”